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ONGC Tops Amongst Other Energy Stocks; Inflation Data Awaited

India’s benchmark indices edged higher on Wednesday, 12th July 2017 as shares of energy companies advanced on the back of higher crude prices, though gains were capped as investors turned cautious ahead of consumer inflation data.

Oil prices rose more than 1.5 percent on Wednesday, extending gains from the previous day as the U.S. government cut its crude production outlook for next year and as fuel inventories plunged.

Investors, however, were also awaiting the consumer price inflation data, which is expected to cool to a record low of 1.70 percent in June, easing further from May’s 2.18 percent, according to a Reuters poll.

Markets are also keeping an eye on corporate earnings including from Tata Consultancy Services Ltd on Thursday and Infosys Ltd on Friday.

Analysts think the Indian market is over-stretched and they warn about a potential correction after indexes hit record highs in each of the two previous sessions.

Reliance Industries gained 2 percent while state-run Oil and Natural Gas Corporation Ltd rose as much as 3.5 percent. Among other gainers, liquor stocks rose after India’s apex court clarified that the ban on sale of alcohol within 500 metres of any state or national highways will not cover roads within city limits.